THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Americans were buying to many stocks and it couldn’t keep up
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Factories were overproducing and began to lay off workers
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Factories were overproducing goods and employment rates increased
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Factories were not producing goods and people couldn’t buy them
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Detailed explanation-1: -The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.
Detailed explanation-2: -There was also overproduction of goods in manufacturing and agricultural industries. Because factories produced more goods than there was demand for, there was an oversupply, which led to lower prices. Many companies suffered losses due to this, which led to their share prices plummeting.
Detailed explanation-3: -The Government Raised Interest Rates Some experts say this steep, sudden hike cooled investor enthusiasm, which affected market stability and sharply reduced economic growth. Another factor was an ongoing agricultural recession: Farmers struggled to make an annual profit to keep their businesses afloat.